Keep these deductions in mind as you prepare your income taxes:
- Moving: If your family moved because of a permanent change of station, you can deduct unreimbursed moving expenses.
- Combat Pay: The pay received for service during the months your spouse served in a combat zone as an enlisted person or warrant officer is not taxable. Officers’ monthly exclusion is capped at the highest enlisted pay plus any hostile fire or imminent danger pay.
- Job Searches: You and your spouse may be able to deduct certain costs associated with civilian job searches, including travel, resume preparation, outplacement agency fees and even moving expenses. (This deduction can only be claimed on itemized returns).
- Travel: Members of the U.S. Armed Forces Reserves can deduct unreimbursed travel expenses if traveling more than 100 miles from home for reserve duties.
- ROTC: These students participating in advanced training do not have to pay taxes on subsistence allowances received; however, active duty pay is taxable.
- Uniforms: If regulations prohibit your spouse from wearing certain uniforms when off duty, you can deduct any unreimbursed cost and upkeep of the uniforms. (This deduction can only be claimed on itemized returns.)
Interesting Tax Facts
- The IRS estimates that it takes the average taxpayer nearly 21½ hours to complete Form 1040 from start to finish.
- The average amount of tax year 2009 federal refunds was $2,887. Direct deposit refunds averaged $3,129.
- In tax year 2009, approximately 80 percent of taxpayers received a refund.
- 93.4 million 2009 federal income tax returns were e-filed – in other words, 7 out of 10 taxpayers e-filed last year
- More than 36 percent of all e-filed 2009 federal returns from individuals were filed from a home computer.